Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Baking soda, a common household item, is produced from a mineral deposit called soda ash. There is only one soda ash deposit in the United States, and it is owned by the Leg and Plier Baking Soda Company. It is reasonable to describe this firm as a(n)
a. unbalanced oligopoly b. balanced oligopoly c. acquisitive oligopoly d. natural monopoly e. unnatural monopoly
If Samsung sells TVs at a higher price in the United States than in Korea, and if there is no cost difference in producing or transporting the TV sets, Samsung would be practicing
A) cartel pricing. B) price discrimination. C) simple monopoly behavior. D) price differentiation.